| Fri 17 Oct 2014, 17:45 | | NEW EUROPE PROPERTY INVESTMENTS PLC - Update on acquisitions and developments and issue of first-time credit rating |
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NEP 201410170040A
Update on acquisitions and developments and issue of first-time credit rating
NEW EUROPE PROPERTY INVESTMENTS PLC
(Incorporated and registered in the Isle of Man with registered number 001211V)
(Registered as an external company with limited liability under the laws of
South Africa, registration number 2009/000025/10)
AIM share code: NEPI JSE share code: NEP BVB share code: NEP
ISIN: IM00B23XCH02
(‘NEPI’, ‘the Group’ or ’the Company’)
UPDATE ON ACQUISITIONS AND DEVELOPMENTS AND ISSUE OF FIRST-TIME CREDIT RATING
This announcement advises shareholders of the various investments NEPI has recently concluded, updates the status of
properties under development and informs shareholders about the issue of a first-time corporate family rating by Moody’s
Investors Service.
Vulcan Value Centre
NEPI completed the construction of the Vulcan Value Centre, which opened for trading on 4 September 2014, seven
months after the start of development works. The property is NEPI’s first retail centre in Bucharest, has 25,200m2 of
Gross Leasable Area (“GLA”), is 95% let and houses various international brands, including Carrefour, CCC, C&A,
Deichmann, dm, Domo, Hervis Sports, H&M, JYSK, Lems, Noriel and Takko. Trading has been very encouraging since
opening.
Shopping City Targu Jiu
NEPI completed the construction of Shopping City Targu Jiu, which started trading on 16 October 2014. This regional
mall, which has 26,800m2 of GLA, is 94% let and houses various international brands, including Carrefour, CCC, Cinema
City, Deichmann, dm, H&M, JYSK and KFC.
Other developments
Mega Mall: Construction and leasing of the 70,700m2 GLA mall are progressing well and it is expected to open as
scheduled, during the second quarter of 2015. Erste Bank rejected the acquisition offer for the joint venture partner’s 30%
interest.
Shopping City Timisoara: Permitting and leasing of the planned 80,000m2 GLA regional mall, located in Timisoara,
Romania’s third largest city, are progressing well. Phase I (55,700m2 of GLA) will include modern leisure and
entertainment offerings. Carrefour has been secured as hypermarket anchor tenant.
Victoriei Office: Construction will commence on this A-grade office development, located in central Bucharest, near the
Government building, once the final deviation works permits are received from the planning authorities.
Various other opportunities, such as the development of a regional mall in Piatra Neamt and extensions to properties in
Cluj, Constanta, Deva and Severin are under consideration and remain subject to permitting and Board approved pre-
leasing requirements.
Aurora Shopping Mall and Alba Iulia strip mall
NEPI has acquired Aurora Shopping Mall and a strip mall with 3,200m2 of GLA, for a total consideration of EUR10
million, in a combined acquisition. The former has 17,900m2 of GLA and is located in Buzau, the capital of Buzau
county, Romania, which has approximately 116,000 inhabitants. The latter is located in Alba Iulia, the capital of Alba
county, Romania, which has approximately 64,000 inhabitants.
The Buzau mall has a prime location, with approximately 430,000 inhabitants within a 45-minute drive. It is the city’s
largest retail scheme, and existing tenants include Altex, Carrefour, Deichmann and New Yorker. Currently it suffers from
a poor layout and tenant mix. NEPI plans to reconfigure and refurbish this mall, including the construction of a cinema, at
an approximate total cost of EUR6 million.
The strip mall in Alba Iulia is located between a Kaufland hypermarket and a Profi hypermarket, near the intersection of
two busy roads. There are approximately 137,000 inhabitants within a 45-minute drive. Present tenants include Altex,
Deichmann, dm, Lems and Takko.
Kragujevac Plaza
NEPI has acquired Kragujevac Plaza, a shopping mall with 22,000m2 of GLA, located in Kragujevac, the capital of
Sumadija, Serbia, for a purchase price of EUR38.6 million. Kragujevac is Serbia’s fourth largest city, with approximately
150,000 inhabitants and a major automobile factory.
The mall, which opened in 2012, enjoys a prime location and is close to several residential neighbourhoods. It is the only
modern Serbian mall outside Belgrade. There are approximately 280,000 inhabitants within a 45-minute drive. The mall is
almost fully let and current major tenants include strong brands such as: C&A, Cineplexx, Deichmann, Idea and New
Yorker.
Further opportunities
Further acquisitions are being considered, including a regional shopping centre in Slovakia and a newly built mall in
Bucharest. Subject to the completion of satisfactory due diligence investigations and detailed legal agreements, one of
these properties is expected to be acquired shortly. Further announcements will be made, as appropriate.
Moody’s Investors Service
Moody’s Investors Service has assigned NEPI a first-time Ba1 (stable outlook) corporate family rating. This rating is one
notch below the country rating for Romania and is due to the Group’s robust financial metrics. The rating enables the
Company to explore the possibility of issuing unsecured debt at the group level in order to optimise its funding sources.
This announcement is for information purposes only. Announcements in compliance with the Listings Requirements of
the JSE Limited, the AIM Rules for Companies and the rules of the BVB will be made in due course, as appropriate.
For further information please contact:
New Europe Property Investments plc
Martin Slabbert +40 74 432 8882
Nominated Adviser and Broker
Smith & Williamson Corporate Finance Limited
Azhic Basirov +44 20 7131 4000
JSE sponsor
Java Capital +27 11 283 0042
Romanian advisor
SSIF Intercapital Invest SA
Razvan Pasol +40 21 222 8731
17 October 2014
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